SC Annuls Service Charge Tax on Mobile Phone Services

service charge tax

The Supreme Court of Pakistan has annulled the service charge tax which is gathered by mobile phone companies on the post-paid mobile services. The decision to suspend charges was taken on Tuesday.

Mian Saqib Nisar—the chief justice of Pakistan headed the hearing session about additional taxes charged by the mobile phone firms.

Shan Gul—the Advocate General Punjab informed the court during the session that the province of Punjab is facing a loss of two billion rupees owing to the cancellation of charges. Upon hearing this the chief justice replied that if the taxes are being collected wrongly then this no loss.

The apex court judge said that if a person loads a hundred-rupee card, then why should the province be getting a share from it. He inquired the provincial representative about the service being given by the province of Punjab in this situation.

The CJP expressed wonder on such exorbitant tax deductions and asked that why such a large amount is being taken by the private mobile firms under the head of taxes.

The federal government and the provincial governments of Punjab and Balochistan have asked for more time from the court about the matter.

The court also instructed to continue providing relief to the customers and suspended the hearing of the case for an undefined period of time.

Back in the month of June, the supreme court annulled the excessive tax deductions on prepaid mobile phone cards.

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